Since their launching, ICOs haven’t really lived up to their hype. Of course, they did improve along the line in terms of the number of investments coming on board and the number of investments.
Some reports totaled ICO fundraising to be more than $5.6 billion last year. Despite some small success some achieved, the rate of failed ICO’s was high, comparing it to those that became successful.
The fall of these ICO’s can be attributed to a lot of things. Many experts believed that ICO’s weren’t well planned enough before breaking into the market. The project of launching ICO’s just followed the sharp rise of the major crypto prices in the latter stages of last year. Since that period, many ICOs have collapsed completely.
Other factors contributing to their failure include inadequate product market, missing brand identity, lack of edit and reporting and irrational budgets amongst others.
However, the fall of ICO’s has been a blessing in disguise for the crypto market. Many reports have found out that, the constant number of failing ICO’s have led to a growth in the cryptocurrency market. Despite the rough couple of weeks, the major coins have endured, some have still seen their dominance rise.
Bitcoin, for instance, has seen its price falling for some weeks now but its growth has still increased by almost 10%. Investors aren’t looking to just invest their money anywhere but also to get profits and with ICO’s failing, many are been compelled to turn to established coins like Bitcoin and Ethereum for investments.
Failing ICO’s although do not completely determine the dominance of Bitcoin and other established coins, what they rather do is driving away investors from the ICO market, which then leads them straight into the crypto market.
Bitcoin has always been the favorite coin for investors to turn to when the market is booming and that further strengthens its dominance. Therefore any little reason investors can get to join that trend will be warmly received.
With the kind of available opportunities now, investors wouldn’t tolerate those that aren’t making any yields. If a new investor looking to make money in the crypto business invested in ICO because it was new and had potential, that same mentality or belief wouldn’t be intact now given all the negative reasons ICO’s are failing and what better option than to divert from something which didn’t had much to stand on in the first place to one which is a giant when they are been compared.
